Family Dollar is one of the fastest growing discount store chains in the US. Over the past 10 years, Family Dollar has added over 4,000 new stores, with over half being opened in the last 5 years. Family Dollar provides customers good values on basic merchandise for families and homes at everyday low prices in small neighborhood stores. Most merchandise is priced under $10.

1. “Family Dollar is my store.
”

2. Corporate Profile
Family Dollar is one of the fastest growing discount store chains in
the United States. During the last ten years, more than 4,000 new
stores have been added to the chain, of which over half were opened
in the last five years. The merchandising strategy that drives this
growth provides customers with good values on basic merchandise for
the family and home in a small neighborhood store. Our merchandise
is sold at everyday low prices in a no frills, convenient, self-service
environment. Most merchandise is priced under $10.00.
Stores are located in a contiguous 44-state area ranging northeast to
Maine, southeast to Florida, as far northwest as Idaho and southwest
to Arizona. Family Dollar stores generally range in size from 7,500
to 9,500 square feet, and most are operated in leased facilities. The
relatively small size enables us to open new stores in rural areas and
small towns, as well as in large urban neighborhoods. Within these
markets, our stores are located in shopping centers or as freestanding
buildings or in urban storefronts convenient to our value-conscious
customer base.
During the fiscal year ended September 1, 2007, we opened 300 new
stores and closed 43 stores to bring the number of stores in operation
at fiscal year-end to 6,430.
Our headquarters are located in Matthews, North Carolina, just outside
of Charlotte. We operate automated full-service distribution centers in
Matthews; West Memphis, Arkansas; Front Royal, Virginia; Duncan,
Oklahoma; Morehead, Kentucky; Maquoketa, Iowa; Odessa, Texas;
Marianna, Florida; and Rome, New York. Family Dollar has been a
publicly held corporation since 1970 and its Common Stock is listed on
the New York Stock Exchange under the ticker symbol FDO.

3. Family Dollar Mission Statement
FOR OUR CUSTOMERS
A compelling place to shop:
by providing convenience and low prices
F O R O U R A S S O C I AT E S
“Our Store
A compelling place to work:
by providing exceptional opportunities
and rewards for achievement
is your Store.
”
FOR OUR INVESTORS
A compelling place to invest:
by providing outstanding returns.
In 1959, we opened our first Family Dollar store. Since then, we
have grown into a $6.8 billion company with more than 6,400
stores in 44 states. Our success is a result of our commitment
to providing our customers with a compelling place to shop, our
Associates with a compelling place to work, and our investors
with a compelling place to invest. In pursuit of this mission, we
continue to make significant changes to our business.
Our customers know they can count on us for value and
convenience, and we are expanding our merchandise
assortment to meet even more of their everyday needs. From
ready-to-eat meals, to an unexpected little treasure, we want
to provide customers with a valuable shopping experience. When Mom walks in the door of a
Family Dollar, we hope she’ll find everything she needs for her home and family.
Our Family Dollar team is our most valuable asset. As we strive to be a compelling place to
work, we are improving our Associate recruiting, training and retention programs. We have
developed a solid team of Associates by cultivating strong internal talent and complementing
their knowledge with experienced industry leaders. We have ambitious objectives for our
Company, and we rely on talented, committed Associates to help us achieve our aspirations.
Despite difficult macro-economic headwinds, we are improving our business. We are expanding
our selection of food, improving the quality of our apparel and home decor, and strengthening
our assortment of seasonal items. But, even as we invest in our business to better position
Family Dollar for the future, we are committed to improving our returns to shareholders through
better inventory productivity and more profitable stores.
In today’s difficult economic environment, our customers need the value and convenience we
offer more than ever. Our management team remains focused on delivering a better shopping
experience for our customers, a more successful work experience for our Associates, and a
stronger investment for our shareholders.
Howard R. Levine
Chairman of the Board and Chief Executive Officer
NOVEMBER 2007

4. “Family Dollar is
my store for Value.
”
At Family Dollar, value means good quality items at affordable prices. Our primary
customer is a hard-working Mom who wants to take good care of her home and family
within limited means. For her, it’s a constant budget-balancing act between the needs
and wants of her family. That’s why she shops at Family Dollar. Good value is being able
to afford an electronic hand-held game for her son or a rose-scented candle for herself, in
addition to Scott Towels and Hefty Garbage Bags. The exciting discovery of a small luxury
she can afford is the value of Family Dollar.
For years Family Dollar has been known for name brand products at low prices in
a variety of categories including household cleaning products, paper goods and health
and beauty aides. But, we’ve improved our home and apparel categories, adding
items like thicker, plusher towels, petal-soft sheets and clothes that make the whole
family look great, all at a fraction of department store prices. The pleasure our shoppers
experience from being able to buy that unexpected treasure is what sets us apart from
the competition.
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5. “When I go to my
Family Dollar, I
know they will
have everything
I need to help me
get the kids ready
in the morning.
And buying what
I need won’t break
my budget.”
“Kids grow up so fast. Family Dollar sells great quality
kids clothes, and I don’t have to spend an arm and a leg
for things they’ll outgrow quickly.”
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6. “Family Dollar is
my store for Convenience.
”
We all lead busy lives and Family Dollar customers are no different. Like everyone else,
they’re in a hurry. Our stores, conveniently located in local neighborhoods, are a
perfect fit for families who don’t have time or money to waste.
Our small-store format, less than 10,000 square feet, allows the customer to find what
she needs quickly. Our convenient neighborhood locations make it easy for a busy
Mom on the go to run in on her way home from work. And the easy in and out access of
“It was my turn
to buy the snacks
for my son’s team,
so my boyfriend
and I went to my
Family Dollar and
got everything
we needed. He
even bought my
son a toy.”
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7. “On the way home from work, I’m in a hurry. I
can run in my Family Dollar, grab exactly what
I need and be home and out of my shoes before
I’d even get to the checkout in a superstore.”
our stores makes it easier for Mom to get home to her hungry family faster.
With two-thirds of all spending occurring in the top fifty metropolitan markets, Family Dollar
is maximizing opportunities to serve families in urban markets. Many retailers avoid
these markets, but we understand that urban shoppers need the same convenience,
value and fun that Family Dollar offers to customers everywhere.
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8. “Family Dollar
is my Family’s store.
”
Whether it’s a single mom picking up a last minute snack for her son’s class party or a
grandmother getting the perfect jumper for her granddaughter, value and convenience
are the cornerstones of providing our customers with a compelling place to shop. But
Family Dollar offers more than just the merchandise our customers need at prices they
can afford. We continually surprise our customers with small luxuries they may not
have been able to afford elsewhere. These “treasures” are the little things that help
our customer create a warm, comfortable home for her family.
Our customers want well-made fashionable apparel for their families, and we carry
the national brands and quality apparel they are looking for. And at Family Dollar,
our customers can dress their homes fashionably too. Our merchandise teams scour the
world to find upscale home décor at a fraction of department store prices.
The addition of coolers for perishable food and our expanded assortment of non-
perishable food items fill a constant need. Mom hurries home late from work and needs
to run in to her Family Dollar for a quick dinner to feed the family. Dad forgot Mom’s
birthday…again. A last minute trip to Family Dollar right down the street, and he arrives
home armed with a lovely gift bag of treasures to delight her.
Family Dollar is a friend and neighbor to the people we serve. Our customers can count
on us to be there for them.
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9. “What a treat it is to see my
grandson smile. Family Dollar is a
great place to spoil him, especially
during the holidays. And with the
money I have left, I can buy myself
a little something too!”
“We love our Family Dollar. It’s right
down the block so it’s easy to run in
and get everything we need all in
one place.”
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10. “Family Dollar
moving Forward.
”
In today’s difficult economic environment, families need the value and convenience
Family Dollar provides. To serve our customers’ needs better, we are enhancing our
selection of food. Coolers will be installed in more stores, and we plan to expand our
space for food in 2,500 additional stores. We also continue to enhance our merchandise
selection in other categories. With the on-going development of our Treasure Hunt
initiative, we will provide more of the special extras for the family and home that make
Family Dollar such a fun place to shop.
We are also making significant investments to improve the shopping experience for
our customers. Our Concept Renewal initiative involves improving new and existing
stores with more intuitive layouts, better adjacencies and new color-coded signage. Stores
will be easier to navigate for our customers and easier to operate for our Associates. Our
Store of the Future initiative, which is planned to grow by 1,500 stores this year,
will enable Family Dollar to accept Electronic Benefit Transfer payments, including food
stamps, giving customers even more options at the checkout line. Store of the Future
technology will also provide our store managers with better analytics and workflow
management. The essential benefit of these improvements to the customer is that
checkout for our busy Mom will be faster and more convenient than ever.
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11. “I’ve made so many friends working at Family Dollar.
My customers all live in the neighborhood and I see
some of them every week. They are really happy that
they can afford to buy all of the stuff they need. I feel
good about that.”
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12. “Family Dollar
is my Future.
”
At Family Dollar, we’re more than just a compelling place to shop for our customers;
we’re also a compelling place to work for our Associates. As a growing Fortune 500
company, we have career opportunities ranging from in-store to distribution centers to
the Corporate Office.
Recruiting and retaining Associates is critical to the success of our Company. We
take great pride in providing the people who work at Family Dollar with clear career
paths. In addition, we are strengthening the link between pay and performance and
improving our Associate benefit plans.
Leadership Team
“I never thought a Howard R. Levine
Chairman of the Board and
career at Family Chief Executive Officer
Dollar could be R. James Kelly
President and
this rewarding. Chief Operating Officer
Robert A. George
I love knowing
Executive Vice President –
Chief Merchandising Officer
that I am part of
Charles S. Gibson, Jr.
a team. Everyone Executive Vice President –
Supply Chain
works well
Barry W. Sullivan
together, and I Executive Vice President –
Store Operations
enjoy knowing
Bryan P Causey
.
that what I Senior Vice President –
Planning, Allocation and
do everyday Replenishment
Dorlisa K. Flur
really makes a Senior Vice President –
Strategy and Business
difference.”
Development
Keith M. Gehl
Senior Vice President –
Store Construction and
Facilities Management
10 11

13. No matter where you work within the Family Dollar team, we are committed to developing
talent and promoting from within. We offer hands-on training programs, excellent
growth potential, merit-based promotions, competitive salaries and so much more.
There’s nothing better than feeling that you’re part of a team. At Family Dollar, the growth
and success of the Company depends upon the individual contribution of each Associate.
Together, we are fulfilling our mission of making Family Dollar a more compelling place to
shop, work and invest.
Joshua R. Jewett Raina Avalon Eric C. Gordon Stephen F. Phillips
Senior Vice President – Vice President – Vice President – Vice President –
Information Technology Transportation Business Applications Store Operations
and Procurement, CIO
Samuel J. Bernstein Joseph A. Hayes, III Kiley F. Rawlins
Vice President – Assistant General Counsel, Vice President –
Janet G. Kelley
Senior Vice President – General Merchandise Manager Corporate and Compliance Investor Relations and
General Counsel and Secretary Corporate Communications
Earl C. Bonnecaze James H. Hays
Vice President – Vice President – Internal Audit
Michael S. Kvitko Richard P Siliakus
.
Senior Vice President – Store Operations Vice President –
Dennis A. Heskett
Merchandising General Merchandise Manager
Vice President –
James R. Bowen
Vice President – Distribution Store Operations
Wook Lee Donald G. Smith
Senior Vice President – Vice President – Marketing
Timothy R. Brokaw Billy W. Jones, Jr.
Global Sourcing
Vice President – Vice President – Distribution R. Jeffrey Thomas
Decision Support Vice President –
Thomas M. Nash
Michael Laurenti
Senior Vice President – Replenishment
Vice President –
Mark S. Chidester
New Stores
Vice President – Information Technology Mike Vickers
Human Resources, Vice President –
John J. Scanlon
Timothy A. Matz
Senior Vice President – Store Operations Store Operations
Vice President –
Merchandising
General Merchandise Manager
Charles D. Curry Boris Zelmanovich
Vice President – Vice President –
Kenneth T. Smith
Colin McGinnis
Senior Vice President – Store Planning and General Merchandise Manager,
Vice President –
Chief Financial Officer Store Development Food and Merchandise
Store Operations Support
Innovation
C. Martin Sowers Allen W. Fields
Dennis C. Merriam
Senior Vice President – Finance Vice President – Scott T. Zucker
Vice President –
Store Operations Vice President –
Human Resources, Distribution
Elizabeth M. Austin
Merchandise Operations
Vice President – Information Marianne Fiorucci
Jacob J. Modla
Technology Operations and Vice President – Michael J. Zuege
Assistant General Counsel,
Infrastructure Planning and Allocations Vice President –
Litigation
Loss Prevention
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14. Family Dollar financial highlights.
September 1, 2007
Years Ended (In thousands, except per share amounts) August 26, 2006 August 27, 2005
$ 6,834,305
Net sales $ 6,394,772 $ 5,824,808
4,512,242
Cost of sales 4,276,466 3,908,569
2,322,063
Gross margin 2,118,306 1,916,239
1,933,430
Selling, general and administrative expenses 1,756,001 1,577,429
—
Litigation charge 45,000 —
388,633
Operating profit 317,305 338,810
6,737
Interest, net 6,161 (3,985)
381,896
Income before income taxes 311,144 342,795
139,042
Income taxes 116,033 125,286
$ 242,854
Net income $ 195,111 $ 217,509
$ 1.63
Net income per common share – basic $ 1.26 $ 1.30
$ 1.62
Net income per common share – diluted $ 1.26 $ 1.30
$ 66,361
Dividends declared $ 62,757 $ 61,538
$ 0.45
Dividends declared per common share $ 0.41 $ 0.37
$ 284,671
Cash and investment securities $ 216,232 $ 138,705
$ 2,624,156
Total assets $ 2,523,029 $ 2,409,501
$ 406,977
Working capital $ 432,737 $ 460,157
$ 250,000
Long-term debt $ 250,000 $ —
$ 1,174,641
Shareholders’ equity $ 1,208,393 $ 1,428,066
0.9%
Comparable store sales gain 3.7% 2.3%
300
Stores opened 350 500
43
Stores closed 75 68
6,430
Number of stores – end of year 6,173 5,898
Return
on Average
Comparable Store Net Income Shareholders’
Per Diluted
Net Sales Sales Gains Net Income Equity
Common Share
(millions of dollars) (percent) (millions of dollars) (percent)
4,750
5,282
5,825
6,395
6,834
20.0
19.6
15.7
14.8
20.4
1.40
1.50
1.30
1.26
1.62
243
258
218
195
243
3.8
1.9
2.3
3.7
0.9
’03 ’04 ’05 ’06 ’07 ’03 ’04 ’05 ’06 ’07 ’03 ’04 ’05 ’06 ’07 ’03 ’04 ’05 ’06 ’07 ’03 ’04 ’05 ’06 ’07
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15. Stores and Distribution Centers
(as of fiscal year end)
Rome
Maquoketa
Distribution
Distribution
Center
Center
44
10 Morehead
Distribution 11
Center 23
68
98
30 139 282 20
21 345 53
20
258 78
34
31
22 91
401 21
5
184
239 Front Royal
61
114 Distribution
102 211 Center
35 93
184
343
201
Matthews
126
194 Corporate Offices
129 98
88 and Distribution
Center
300
144
114
797 Marianna
225
Distribution
Center
343
Odessa
Distribution
Center
West Memphis
Duncan Distribution
Distribution Center
Center
Distribution Service Areas Number of Stores
(as of fiscal year end)
Rome, New York Maquoketa, Iowa Front Royal, Virginia
907,000 Sq. Ft. / Opened ’06 907,000 Sq. Ft. / Opened ’02 907,000 Sq. Ft. / Opened ’98
Marianna, Florida Morehead, Kentucky West Memphis, Arkansas
907,000 Sq. Ft. / Opened ’05 907,000 Sq. Ft. / Opened ’00 850,000 Sq. Ft. / Opened ’94
2,767
3,017
3,324
3,689
4,141
4,616
5,027
5,466
6,173
6,430
Odessa, Texas Duncan, Oklahoma Matthews, North Carolina
’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07
907,000 Sq. Ft. / Opened ’03 907,000 Sq. Ft. / Opened ’99 890,000 Sq. Ft. / Opened ’74

16. Post Office Box 1017 / Charlotte, North Carolina 28201-1017 / www.familydollar.com